Manchester United Stock Tanks As $6 Billion Sale Appears Uncertain

Topline

Share prices of storied English soccer club Manchester United steeply declined Monday, after deflating Financial Times reports over the weekend cast doubt over a potential record-breaking $6 billion sale, delivering further pain for the stock that has fallen almost 25% in the past week-and-a-half.

Manchester United’s Jadon Sancho celebrates after scoring his side’s second goal during the English … [+] Premier League soccer match between Manchester United and Leeds United at Old Trafford in Manchester, England, on February 8, 2023. (AP Photo/Dave Thompson)

Key Facts

Manchester United’s stock dropped more than 9.2% Monday to close at $20.78, before falling another 0.9% in after-hours trading to $20.60 as of 5:55 p.m. Eastern.

The stock is now down more than 24.5% since it hit a 52-week high of $27.34 on February 16, following reports the Qatar Islamic Bank chairman submitted a bid to buy Manchester United that could reach $6 billion—the number the billionaire Glazer family reportedly wants to sell the club.

But the Financial Times reported Saturday the Glazer family doesn’t believe the two bids it’s received so far—one from Qatar and the other from British billionaire James Ratcliffe—are high enough, while both bidders are reportedly wary of overpaying for the club.

A separate FT analysis of Manchester United’s finances put the fair value of the club at only about $1.6 billion, though it noted the massive fanbase and club prestige would certainly serve to drive bids higher.

Big Number

$4.6 billion. That’s Forbes’ most recent estimate of Manchester United’s value, calculated last May. Its stock-based market cap slumped to less than $3.4 billion following Monday’s decline.

Contra

Manchester United won its first major trophy since 2017 on Sunday with a 2-0 win over Newcastle United in the EFL Cup final. The club still has not won the Premier League since 2013, marking its longest period without winning England’s top league since a 26-year drought between 1967 and 1993.

Key Background

The Glazer family started contacting investment bankers in the fall for a possible sale of the club, following years of fan outrage over their management. Manchester United was widely considered among the best clubs in the world when the late Malcolm Glazer took control of the organization in a 2005 deal that valued it at about $940 million. But Glazer and his six heirs, who now own more than 95% of Manchester United, have faced rampant accusations from fans of using the club to enrich themselves, saddling the company with hundreds of billions of dollars in debt. News of a potential sale sent Manchester United’s stock soaring from $13.03 on November 21 to $22.73 on December 2—a nearly 75% jump.

Tangent

The record price for a sports team sale is $4.65 billion, set last year when Rob Walton—an heir to the Walmart fortune—bought the Denver Broncos. Forbes estimated the Broncos were worth $3.75 billion before the sale. It’s not unusual for sports teams to sell far higher than estimated values. The billionaire Haslam family reportedly bought a stake in the Milwaukee Bucks NBA franchise recently that values the team at $3.5 billion—far more than the $2.3 billion Forbes estimates the Bucks are worth.